Thursday, September 29, 2022

The importance of performance management

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Shreya Christina
Shreya has been with for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider team, Shreya seeks to understand an audience before creating memorable, persuasive copy.

Arijana Koskarova is the CEO and founder of Creative Hub. A former business executive with over 10 years of experience in business development.

The core purpose of a business is to generate revenue and make a profit. Income is made by the human capital working in the company. Employees bring customers and customers stay loyal thanks to your employees.

Since so much depends on your employees, how can you make sure your employees feel fulfilled, valued and happy in their workplace. You can do this by giving them clear directions on how to grow and what their future will look like in the company. But let’s dive even deeper. For someone to grow, they must be able to perform well and they must have access to the necessary training.

So, after breaking through the structure of why companies exist, what is the most important process in the company? I think the answer is performance management.

Without having implemented performance management in the organization, you cannot provide clear feedback. Your employees don’t know what is expected of them, how their performance is measured or what they need to achieve to move to the next level.

I often find it the most difficult process to implement, as staff may resent your approach. Imagine a company where no one has been judged until now and suddenly everyone’s promotion, bonuses and work are on the line.

But as managers, we need to understand that our job is to focus on the company’s strategy and innovation, not the day-to-day micromanaging of the team. An established performance management process will show everyone what is expected of them on a daily basis: their KPIs and how they are broken down into milestones. Employees ultimately appreciate knowing exactly what to do each week so that they stay on track and get their bonus bonus or a good grade on a performance appraisal in, say, six months that gives them opportunities to apply to the next level.

In addition, performance management is directly linked to the incentive/discipline process. For the good employees, you can introduce a merit reward system; for those who slow down their performance, you can develop a disciplined process, including concrete action plans that will help them improve.

This way you don’t get stuck with low performers and you don’t have demotivated high performers because you have a system.

Evaluating the performance of your employees is the first and most important system you should develop in your organization. It starts with management acceptance and training and then escalates to the entire organization. Every lead, supervisor or assistant manager should be properly trained in how to evaluate the team so that your company doesn’t end up with a pile of complaints from the HR department.

More importantly, everyone understands that this process is crucial and beneficial to them, as it can give them a clear picture of their performance based on their KPIs and the effort they have put in.

That’s why I recommend emphasizing performance management as it is the most important system a CEO can have in the organization, no matter how big or small. Business Council is the leading growth and networking organization for entrepreneurs and leaders. Am I eligible?

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